As an investor you’re keen on finding the best investment, and to find that perfect deal you need to locate a property whose price fits into your goals. NNN for sale by owner listings can be tempting when you’re looking for a high return investment, and in some aspects of real estate can be great deals without all the fees that come along with working with a realty or investment advisory. If you’re dealing in cash, you can often get prices even lower and close faster dealing directly with an owner.
However, when it comes to triple net properties, the market and the variance in the lease deals in place on a property can present some unique intricacies that are hard to navigate (or easier to miss) when working the for sale by owner route.
In most cases, it’s much safer and more lucrative in the long-term to instead work with reputable net lease advisors who manage listings on the behalf of owners.
Here are 3 main reasons you should avoid NNN for sale by owner properties:
1. Triple Net Lease Variables Are Easily Muddled
Typically, triple net lease properties will have existing tenant deals in place that you will assume as the new owner of the property at the time of purchase. The most common financial responsibilities passed on to tenants in triple net leases are: taxes, insurance and maintenance. However, there is no set standard in what a triple net lease contains in exact terms. There may be some costs that are divided between the tenant and property owner, or some that may be deemed the responsibility of the owner (to be offset in the monthly rent amount).
Triple net lease variables can make or break your profitability on a property, so it’s vital that you understand the terms of an existing lease. In triple net for sale by owner listings, these details tend to get muddled or are poorly articulated at best. When you work with a trusted net lease advisor, they can guide you through with process with expertise and make sure no surprise costs are waiting on the other side of your closing date.
2. Less Room for Negotiation
When you work with a net lease advisor, you have an expert negotiator on your side who knows the market well and can help you secure the very best terms on your triple net deal. They know what cap rates mean to your long-term profits and can advise you on your investment to make sure you get the very best deal possible and are set up for success with your triple net property investment.
Additionally, when you’re dealing directly with an owner on the sale, you’re likely going to have less room for negotiation. Even if you’re paying all in cash, you may not actually be getting the best deal available on the market.
3. Listing (and Financing) Options Are Limited
When you’re looking at an NNN for sale by owner listing, it’s important to understand the limitations you’re facing in purchasing such a property. You’ll have less financing options available typically, and if you’re like most triple net investors, you’re likely looking to finance at least part of your NNN property for equity and income purposes.
Likewise, you’ll simply have less options when it comes to listings. Most NNN property owners list with prominent brokers who work in a large network and can get them the most exposure to qualified buyers. So, you’ll have more choices if you’re looking where the most NNN properties are listed.
Working with a reputable net lease advisor is a great way to ensure that you get access to the best properties available and understand all of the net lease details before you enter a deal. Reputable net lease advisors, like those who work with Sands Investment Group, have extensive experience in the triple net lease real estate and we can demonstrate a proven track record of successful property deals (and profitable investors they’ve worked with in the past).
In fact, we have over 1,700 transactions in 48 states (to the tune of $4 Billion) since 2010. Our net lease advisors can help you find and qualify triple net listings that align with your investment strategy and also assist you with financing and net lease negotiations on the property you choose for your portfolio.
Want to learn more? Get in touch with an expert net lease advisor today by calling 844.4.SIG.NNN or sending us an email at info@SIGnnn.com.